Employee share ownership and organisational performance: a tentative opening of the black box
نویسندگان
چکیده
Purpose – A range of studies have shown that performance is typically higher in organisations with employee share ownership (ESO) schemes in place. Many possible causal mechanisms explaining this relationship have been suggested. These include a reduction in labour turnover, synergies with other forms of productivity-enhancing communication and participation schemes, and synergies with employer-provided training. The paper aims to discuss these issues. Design/methodology/approach – This paper empirically assesses these potential linkages using data from the 2004 and 2011 British Workplace Employment Relations Surveys, and provides comparisons with earlier analyses conducted on the 1990 and 1998 versions of the survey. Findings – Substantial differences are found between the 2004 and 2011 results: a positive relationship between ESO and workplace productivity and financial performance, observed in 2004, is no longer present in 2011. In both years, ESO is found to have no clear relationship with labour turnover, and there is no significant association between turnover and performance. There is, however, a positive moderating relationship with downward communication schemes in 2004 and in 2011 in the case of labour productivity. There is no corresponding relationship for upward involvement schemes. Research limitations/implications – The results are only partially supportive of extant theory and its various predictions, and the relationship between ESO and performance seems to have weakened over time. Originality/value – The study further questions the rhetoric offered in support of wider ESO.
منابع مشابه
Inside the Black Box: Organisational Buying Behaviour and Strategic Purchasing in Healthcare: A Response to Recent Commentary
متن کامل
The Moderating Role of Power Distance on the Relationship between Employee Participation and Outcome Variables
Background Many organisations have realised the importance of human resource for their competitive advantage. Empowering employees is therefore essential for organisational effectiveness. This study aimed to investigate the relationship between employee participation with outcome variables such as organisational commitment, job satisfaction, perception of justice in an organisation and readines...
متن کاملEffect of employee branding on market share based on individual and organizational values (Studied in: Mellat Bank)
In service industries, companies increasingly need to rely on the performance of their service employees to become and stay truly competitive. Despite this viewpoint, most administrators do not believe that they can make competitive advantage in their organizations through employees. Therefore, the present paper aims to study the effect of employee branding on market share based on individual a...
متن کاملA Supply - Scarcity and Strategic Decision-Making Angle: High Performance Work Practices in Small Firms
High performance work practices (HPWPs) are human resource management practices aimed at stimulating employee and organisational performance. The application of HPWPs is not widespread in small organisations. We examine whether the implementation of coherent bundles of HPWPs (aimed at employee ability, employee motivation or at the opportunity to perform) depends on the scarcity of resources, a...
متن کاملWages, Supervision and Sharing: An Analysis of the 1998 Workplace Employee Relations Survey
Instrumental efficiency wage models predict an inverse relationship between wages and supervision with this relationship becoming more pronounced amongst firms that participate in some form of employee sharing. To be sure, our theoretical exposition predicts that an increase in total remuneration will elicit a larger cut in optimal monitoring in ‘sharing’ rather than ‘non sharing’ firms. In thi...
متن کامل